FROM: Lisa Sorani, Manager of HR Employee Services LS -
FROM: Lisa Sorani, Manager of HR Employee Services LS -
FROM: Lisa Sorani, Manager of HR Employee Services LS -
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THE CURRENT INTEREST RATE ENVIRONMENT<br />
• However, the problem posed by the low current yield on Fixed Income is not the only problem<br />
facing Plan Sponsors<br />
• Plan Sponsors also face the possibility <strong>of</strong> capital loss as interest rates start to rise<br />
• Why is this?<br />
o<br />
There is an inverse relationship between bond prices and interest rates<br />
Pension Consulting Alliance, Inc. ││ EBMUD Fixed Income Discussion │ 7